WHAT IS MORTGAGE UNDERWRITING?
MORTGAGE UNDERWRITING
The system of Mortgage is extremely helpful for the borrower as a Mortgage makes his/her dream come true, for example owning a house with the help of a Mortgage. Since the process of lending funds through Mortgage involves transactions of heavy amounts; therefore, a trust factor should always be in place between the two parties. To ensure that trust, certain technicalities are important in the process of Mortgaging, and most important among those is Mortgage Underwriting.
What is Mortgage Underwriting in UK?
Mortgage Underwriting is an important process of Mortgage through which the lender ensures the credibility of the borrower. The lender extracts the information about the borrower and his ability to make the repayment of the mortgage on time. Let us understand the process of Mortgage Underwriting more deeply.
What kind of information does the underwriter extract?
The Mortgage Underwriting process in the UK involves a lot of checks of the borrower and reviewing the background very precisely. Following are some of the checks that are done by the Mortgage underwriter:
- Precise information about the property that the borrower wishes to purchase like market value, etc.
- Credit Score of the borrower and his/her ability to repay the mortgage.
- The past credit record of the borrower.
- Gross Income, expenditure, assets, and investments of the borrower are scrutinized wisely.
Types of Mortgage Underwriting
There are 2 types of Mortgage Underwriting in the United Kingdom which are explained in detail as follows:
- Manual Mortgage Underwriting: A Mortgage Underwriter is an entity that works under the mortgage lender. The Mortgage Underwriter in UKmanually extracts the information about the borrower and traditionally does all the required verification.
- Automated Mortgage Underwriting: Automated Mortgage Underwriter is a technological process that involves assessing all the facts and details about the Mortgage Borrower. The system works on the line criteria which are predetermined by the lender.
